Business Model

Promantra LPO Business Framework

The Five Phases of a LPO Relationship

A systematic planning and execution framework helps deliver the expected value, combining the benefits of cost reduction and process re-engineering. The fact is that we need to keep containing costs and at the same time become more competitive with increased performance of our workforce. Developing the conceptual model for outsourcing is relatively easy, as compared to the difficulty that lies in executing it. The complexity is daunting, and the business proposition, though beneficial in the long run, is very difficult to implement if it is not planned carefully. Therefore,

Phase 1: Analysis

With the LPO, the service provider owns and operates the resources, including infrastructure, applications, and people, to deliver a business process as a service to customers. We prepare for a smooth transition of these core processes and would require substantial upfront planning:

• Market intelligence to assess what competitors are doing and benchmarking the current process against the best goal
• Understand, improve, design, build, and source more cost-effective business processes
• Perform risk analysis
• Assess the process core competencies
• Set the destination - what constitutes success?
• Evaluate total cost of providing the service, if engaged (gross margins, operating costs, etc.) infrastructure, management, knowledge capture, and training costs

Phase 2: Planning

The LPO contracts are to be long-termed and hence, a projection into the future is imperative. Several factors such as the policy scenario, the quality of infrastructure and human capital, and the location of facilities can affect long-term outcomes. We plan the following activities before hand:

• Review the existing processes
• Develop key objectives
• Decide which processes and functions we need to target
• Perform a cost benefit analysis

Promantra encourages its potential clients and partners to visit and get a feel for the country and the location, and at the same time check process fulfillment capabilities, and meet the teams, not just management. We do believe that clients have good reasons to evaluate organizational readiness and transition assessment of PromantraLPO.

The Service Level Agreements and escalation documentation shall be created to check-resolution and problems. While providing our clients with service solutions, we also help our clients in developing their own human resource plan to redeploy, transfer, or let go staff

Phase 3: Transition

We do completely understand that LPO clients/Companies that outsource processes to Promantra are relying on us. And we are open to being asked tough strategic questions that would act and propel any such fear that our client might have while selecting us as their core process partner. All service agreements are structured to ensure that there are no defaults, and to the stakeholder’s satisfaction and reassuring those of their ability to exercise control over processes and quality. The steps involved in this phase include:

• Requesting the RFQ
• Mutual evaluation after developing criteria
• Visits by potential clients/partners
• Discuss a pilot approach
• Negotiate contract
• Determine payment terms and conditions, i.e., pay up-front or over an extended period
• Manage the transition by developing a transition timeline
• Communicate clearly the contract to the stakeholders
• Define in detail the scope of the project
• Mitigate operational risk by planning for unexpected operational problems
• Data protection
• Train new staff
• Manage the project

Phase 4: Governance

Everything we do goes towards assuring quality and the benefits of our LPO offers. We believe that without appropriate checks and balances, we may run the risk of jeopardizing its client relationships. This is only through an inability to provide continuous good services and failing to improve productivity. To mitigate this, we consistently:

• Transform the critical processes
• Develop operational processes and tools
• Manage and communicate new processes, procedures, roles, and responsibilities
• Train staff
• Perform relationship management
• Perform quality management
• Engage in scenario planning

Phase 5: Improvement

Quality and Process Improvement are our primary concern and to further ensure that the high level of quality that is anticipated and achieved by the clients internally is further improved. This requires paying attention to the following tasks:

• Tracking performance through key metrics
• Leveraging new capabilities
• Demanding continuing innovations
• Designing process improvements

The bottom line

We believe that the fundamentals don't change, and therefore what we intend to do is to: Set targets, deliver the results, measure progress, adjust direction, and reward success. Then, do it all over again and again and again, striving to better it further to our client’s satisfaction.

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